Until not long ago, the term Blockchain was not as popular in the tech world as it is now. Blockchain is not only trending but it is here to stay. In addition to the term being used in the financial sector, it has now being heard everywhere; however, the most impact, challenges and concerns are currently related to the financial sector.
Banks are not the only organizations that will face the challenges blockchain brings, forcing various companies and industries to adapt. They are however realizing that a less centralized and rigid information model is changing toward the concepts of a more social or peer-to-peer economy. A new approach, platforms and users will bring many opportunities for growth in the fintech sector. This is currently happening, regardless to such organizations and regulations supporting such innovative changes.
Banks will not disappear however, but cryptoactivities do present a challenge, possibly a threat to such organizations.
The well-known crypto currency Bitcoin, is only as popular as its technology, and because of it. Blockchain is a transaction record replicated in different nodes, but unique, cryptographically secure, append-only, immutable, and modifiable by consensus.
Although many big players have already started investing in Blockchain and it will have an impact in various industries, it will still take some time.
Distributed Ledger Technology (DLT) can contribute and add value to the financial system, by confidence generation, value transfer, reconciliations and internal processes. Banks recognize that the client's relationship is changing and they must adapt.
Blockchain and Technology around it enhances the progress of quantum computing, which also has reflects on the most modern technological systems of today.
Fintechs are the outcome of applications and new technologies in the financial sector. But when many of these solutions are still being implemented, blockchain technology with its advantages in terms of privacy and security are already giving way to what today can be called fintech 2.0. The challenge is to update itself so as not to be obsolete. Allowing it to become a benchmark in innovation.